Development Fund will provide a facility for oil imports with a one-year deferred payment option worth $1.2 billion.
The Saudi royal family will continue to provide all possible assistance to Pakistan, said the head of the Saudi Fund for Development.
Pakistan and the Saudi Development Fund have signed agreements worth $1.61 billion.
ISLAMABAD ( WEB NEWS )
An MOU (Memorandum of Understanding) has been signed between Pakistan and Saudi Arabia for the oil import financing facility, under which Pakistan will receive oil worth $1.20 billion on deferred payment for one year. According to the Prime Minister’s Office Media Wing, a delegation of the Saudi Fund for Development (SFD), led by Sultan bin Abdulrahman Al-Murshid, Chief Executive Officer, met with Prime Minister Muhammad Shehbaz Sharif. The Prime Minister welcomed the delegation and referred to the longstanding friendship between Saudi Arabia and Pakistan, appreciating SFD’s efforts in providing financial aid to Pakistan in the fields of health, energy, infrastructure, and education, as well as its reconstruction efforts after the devastating floods of 2022.
The CEO of SFD thanked the Prime Minister and the government of Pakistan for their warm reception and hospitality. The CEO briefed the Prime Minister about the ongoing projects, including the Mohmand Hydropower Project, the Dargai Hydropower Project, the Malakand Regional Development Project, and other projects funded through Saudi grants. The Prime Minister appreciated SFD’s support and emphasized the need to accelerate the pace of new projects in green energy and infrastructure, which will help ensure Pakistan’s sustainable development. The CEO assured the Prime Minister that Saudi Arabia, under the leadership of the royal family, would continue to provide all possible assistance and cooperation to Pakistan.
The Prime Minister thanked the CEO and the members of the delegation and extended his best wishes to all members of the royal family, especially Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and Crown Prince and Prime Minister Mohammed bin Salman.
The meeting was attended by Deputy Prime Minister Ishaq Dar, Minister of Economic Affairs Division Ahad Khan Cheema, Minister of Finance Mohammad Aurangzeb, Minister of Information and Broadcasting Attaullah Tarar, Minister of Petroleum Dr. Musaddiq Malik, and Special Assistant to the Prime Minister Tariq Fatemi, along with senior officials of the Government of Pakistan. Saudi Ambassador to Pakistan Naufal bin Saeed al-Malki was also part of the four-member Saudi delegation.
After the meeting, the Prime Minister attended a signing ceremony for the Oil Import Financing Facility and the Mansehra, Khyber Pakhtunkhwa Gravity Flow Water Supply Scheme. Dr. Kazim Niaz, Secretary of Economic Affairs Division, and CEO of SFD Sultan bin Abdulrahman Al-Murshid signed the agreements on behalf of their respective governments. The Prime Minister welcomed the signing of the oil import financing facility, under which Pakistan will receive oil worth $1.20 billion on deferred payment for one year. This project will strengthen Pakistan’s economic resilience by reducing immediate financial burdens and ensuring stable supplies of petroleum products.
SFD will provide $41 million for the Mansehra Gravity Flow Water Supply Scheme in Khyber Pakhtunkhwa, which will increase access to clean drinking water for 150,000 local people in Mansehra, and will provide sufficient water to meet the needs of 201,249 individuals by 2040.
Finance minister shares economic update with SFD
Finance Minister Muhammad Aurangzeb also shared updates on Pakistan’s macroeconomic stability, highlighting improvements in key economic indicators, in a meeting with the SFD CEO.
The minister expressed gratitude for the longstanding partnership between Pakistan and Saudi Arabia, emphasising the importance of Saudi Arabia’s continued support in funding and investment, which he said had significantly contributed to Pakistan’s economic growth.
He recalled his recent meeting with Saudi Minister of Finance Mohammed bin Abdullah Al-Jadaan in Davos and the latter’s invitation to Pakistan to attend the first edition of a high-level annual conference later this month on challenges and opportunities facing emerging market economies.
The finance minister expressed his anticipation for the conference, noting the valuable insights he hoped to gain from the event and the leadership of Saudi Arabia in implementing Vision 2030.
The SFD CEO lauded the progress of Pakistan in terms of macroeconomic stability and growth, which he said opened up numerous multi-purpose investment opportunities across various sectors.
He particularly noted the potential for further collaboration between Pakistan and Saudi Arabia, inviting investors from the kingdom to explore these emerging opportunities.
He acknowledged the valuable contributions of Pakistanis in the development of Saudi Arabia, recognising them as the largest foreign workforce in the Kingdom.
He expressed Saudi Arabia’s need for a skilled workforce to meet the demands of its growing market. To address this, he proposed a partnership with relevant government ministries and departments in Pakistan to offer training programmes for young Pakistanis in modern and relevant skill sets to meet the labour market demands in Saudi Arabia.
The meeting underscored the strong ties between Pakistan and Saudi Arabia and set the stage for further economic collaboration with a focus on investment, workforce development and expanding bilateral cooperation.